HOW TO IDENTIFY A TREND

An upward trend is identified by a series of higher highs and higher lows. A downward trend is identified by a series of lower highs and lower lows. As long as the series continues the trend will remain intact. A simple way to identify a trend is by placing a plus sign or some other symbol on the chart as shown. Once the series is interrupted the trend is then drawn into question. So, if you are trading the daily time frame you should go to the weekly time frame to identify the trend and then go back to the daily time frame to look for trade opportunities in the direction of the trend.